By:  Truan, Lucio                                     S.B. No. 1823
                                A BILL TO BE ENTITLED
                                       AN ACT
 1-1     relating to the form of a proposal guaranty for a contract of the
 1-2     Texas Department of Transportation.
 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-4           SECTION 1.  Subchapter A, Chapter 223, Transportation Code,
 1-5     is amended by adding Section 223.014 to read as follows:
 1-6           Sec. 223.014.  FORM OF PROPOSAL GUARANTY.  (a)  If the
 1-7     department by rule requires a proposal guaranty as a condition of
 1-8     bidding for a contract, the rule must allow a bidder to submit a
 1-9     bid guaranty in the form of:
1-10                 (1)  a cashier's check or money order drawn on a
1-11     financial entity specified by the department; or
1-12                 (2)  a bid bond issued by a surety authorized to do
1-13     business in this state and approved by the department.
1-14           (b)  The department may accept a bid bond for a project if
1-15     the department estimates the contract costs to be less than five
1-16     million dollars.
1-17           SECTION 2.  This Act takes effect January 1, 2000.
1-18           SECTION 3.  The importance of this legislation and the
1-19     crowded condition of the calendars in both houses create an
1-20     emergency and an imperative public necessity that the
1-21     constitutional rule requiring bills to be read on three several
1-22     days in each house be suspended, and this rule is hereby suspended.